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Thursday, September 22, 2011


All the traditional economically sensitive names (ie commodities) are really rolling over.  The dollar advance has a ton  to do with these moves, and the charts of some of these names show blind selling. Its just blind selling.

Things I did today:

1. Covered the light SPY put protection that I had coming into today. (I still have the FXE puts in play.)
2. Added to AAPL
3. Bought back IBM
4. Bought AXP
5. sold off SU
6. sold off POT

I am holding off on BAC because of the flattening of the yield curve. May revisit the trade after the dusts settles. Also, I will re-visit the commodity names when I cover my FXE puts or when the commodity stocks play off of their earnings versus their assumed negativity from the commodity.

Basically, with 'operation twist' the Fed effectively wiped out the inflation of the emerging markets. Hence the pressure on the commodities and related names. (Economically this is a good thing, and will allow Brazil, China and others to really kick start growth. But in the mean time, its a shock and a half for the stock market.)

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